- Inspection year
- 2022
- Report date
- 11-Dec-2023
- PCAOB release
- 104-2024-014
- Audits reviewed
- 1
- Audits w/ Part I.A deficiencies
- 1
- Part I.A deficiency rate
- 100%
- Part I.A deficiencies
- 4
- Part I.B deficiencies
- —
- Report
- View PDF ↗
Deficiencies (4)
Grouped by issuer and in the same order as the PCAOB report, so each item ties back directly to the source.
Issuer A4 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Inventory | The firm did not perform any procedures to test the existence of certain inventory. (AS 2510.09) Financial statement audit only | AS 2510.9 | Significant risk |
| 2 | Inventory | The firm did not perform sufficient procedures to test the inventory unit costs because its procedures were limited to recalculating the unit costs based on inventory quantity and costing information provided by the issuer and/or comparing certain unit costs to those provided by the issuer. (AS 2301.08 and .11) Financial statement audit only | AS 2301.8; AS 2301.11 | Significant risk |
| 3 | Inventory | The firm did not test whether the variances between the issuer's unit cost calculations and the actual costs incurred during the year were appropriately capitalized to inventory or expensed to cost of sales. (AS 2301.08 and .11) Financial statement audit only | AS 2301.8; AS 2301.11 | Significant risk |
| 4 | Inventory | The firm's approach for testing inventory reserve was to review and test management's process. The firm did not test the accuracy and completeness of certain data used by the issuer to estimate the inventory reserve. (AS 1105.10) Financial statement audit only | AS 1105.10 | Significant risk |